Europe drops after U.S. jobs growth

Alitalia surges after avoiding bankruptcy

LONDON (CBS.MW) -- European stocks dropped Friday after U.S. jobs growth in April was greater than anticipated, raising expectations of an imminent interest rate hike in the U.S.

The German DAX Xetra 30 index (1876534) fell 1 percent at 3,871 and the French CAC 40 index (1804546) fell 0.5 percent at 3,635. Stocks in London also fell after the jobs data, although the pound did not move as much as the euro in reaction. See London markets.

German and French stocks were coming off of heavy losses on Thursday that wiped out stock market gains for April from concerns over surging energy prices.

The euro was last at $1.1967 vs. the dollar, falling after U.S. non-farm payrolls for April increased by 288,000.

The average forecast of Wall Street economists surveyed by CBS Marketwatch called for nonfarm payroll employment to rise by 172,000 in April, about the average monthly gain for the first quarter.

Adidas-Salomon (500340), the apparel maker whose costs are denominated in dollars, was hit 2.7 percent, while other market-sensitive stocks such as German bank Commerzbank (803200) declined less than 1 percent.

Total rises as Q2 looks 'favorable'

French oil giant Total (012027)
TOT, +1.49%
rose 0.6 percent after the oil major reported first quarter net income declined 8 percent to 1.96 billion euros, on a 2 percent decline in sales to 27.3 billion euros. The company said the results were impacted by weakness in the dollar, a decline in European refining margins, slightly higher hydrocarbon prices and a rebound in chemicals.

Total said the second quarter has seen a favorable oil market environment due to demand growth and low inventory levels, with both oil prices and refining margins at high levels.

Total also confirmed it has interest in acquiring a stake in Russian oil group Sibneft, but said there are no opportunities at present.

Other oil majors, such as Royal Dutch (00947)
RD
were lower after recent gains on the back of record high oil prices.

The board of Infineon will meet next week to vote on whether Wolfgang Ziebart, presently deputy chairman of tire maker Continental (543900), will take over as CEO, AFX News reported. Ziebart, if confirmed by the board, will replace Ulrich Schumacher, who resigned in March. Continental is already seeking a replacement for Ziebart, the report added.

Shares of Italian airline Alitalia rocketed 16.6 percent after being suspended in recent sessions while the government and unions agreed on a deal to help the struggling airline avoid bankruptcy.

Under the deal, the entire board was fired, Gianfranco Cimoli was named chairman and chief executive and the company will issue shares, AFX News said. No layoffs or outsourcing was announced.

German stock exchange and futures market operator Deutsche Boerse (581005) gained 2.1 percent after it said first quarter EBIT rose by 5.3 percent to 132.8 million euros, on a 8 percent revenue rise to 379.1 million euros.

"The recovery of equity markets is benefiting the securities custody business, cash market trading, and the settlement of on and off-exchange transactions," the company said, though operating profits declined 17 percent at Eurex due to the start of its U.S. derivatives exchange.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.